Bitcoin Rally Fueled by Institutions, Retail Lags Behind
Key Takeaways
- Bitcoin (BTC) is currently experiencing a price increase, driven primarily by institutional investors.
- Retail investor demand remains largely absent despite rising prices.
- On-chain data indicates declining network activity and low participation in small transactions.
- Valuation metrics such as the NVT Golden Cross and Puell Multiple show early signs of overheating.
- Without stronger participation from retail investors, the rally may lose stability.
Institutions Driving Bitcoin Price
Bitcoin is currently showing a significant price increase. However, this is not supported by a broad user base but rather by large transactions from institutional investors. Exchange flow data confirms this: On May 28, BTC worth 721.44 million USD was withdrawn from exchanges, while only 616.51 million USD was deposited. At the same time, BTC reserves on exchanges declined by 0.96% to 266.49 billion USD.
Such outflows often indicate long-term holding intentions—a typical behaviour of institutional investors. This development can lead to short-term supply shortages and support the price.
Retail Investors Remain Cautious
Despite Bitcoin trading above 100,000 USD, there is little movement among retail investors. The number of new wallet addresses decreased by 5.93% over the past seven days. Active addresses also dropped by 6.46%. Wallets with a zero balance declined by 9.79%. These figures suggest a stagnant user base and low transaction activity.
In a healthy bull market, network usage typically increases significantly. The absence of this dynamic suggests that the current price rally lacks broad support.
Transaction Volume Shows Clear Imbalance
A look at transaction sizes highlights the dominance of large market players. Transactions under 1 USD declined by 66.38%, and those between 10 and 100 USD fell by 6.90%. In contrast, the number of transactions over 10 million USD increased by 59.26%. Transactions between 1 and 10 million USD also rose by 13.26%.
This distribution indicates a rally primarily driven by large investors. However, sustainable growth also requires participation at smaller levels.
You should read that too:
-
Asian Slots – The Best Asia-Themed Online Slot GamesReading time: ~ 3 minutes
-
Wild West Slots – The Best Slots With a Western Theme
Reading time: ~ 3 minutes
-
Low Volatility Slots
Reading time: ~ 3 minutes
-
Medium Volatility Slots
Reading time: ~ 3 minutes
-
Best Cluster Pay Slots & Casinos 2025
Reading time: ~ 3 minutes
Valuation Metrics Indicate Overheating
Two key indicators suggest that the current price increase may not be supported by fundamentals:
- NVT Golden Cross: This indicator compares price with network transaction volume. It recently dropped by 26.06% to 1.075—signalling declining network activity relative to price.
- Puell Multiple: Measures miner revenue relative to the historical average. This value fell by 11.22% to 1.297, also indicating an above-average price level compared to network performance.
Our Assessment
The current Bitcoin rally is clearly driven by institutional demand and long-term holding intentions. This can provide short-term stability. However, without the return of retail investors, a key foundation for a sustainable bull market is missing.
Low network activity, declining retail transactions, and falling valuation metrics point to potential structural weaknesses in the market. If you’re aiming for long-term gains, watch to see whether broader participation picks up again. Only then could this rally evolve into a true, sustainable bull market.
Sources
- CryptoQuant
- Coinglass
- IntoTheBlock
| Symbol | BTC |
| Coin type | Alt Coin |
| Transaction Speed | Slow |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | 106094 |
| 24h % | -1.99 % |
| 7d % | -4.68 % |
| 30d % | 12.09 % |
| 60d % | 29.52 % |
| 1y % | 56.33 % |
| Market Cap | $2,107,737,742,619.00 |
| Max. Supply | 21,000,000.00 |
| Official Links | Website | Whitepaper | Source Code |
| Socials | Reddit | X | Message Board |
Advertising transparency